In this article we explore the potential of the capability approach as a normative basis for eco-social policies. While the capability approach is often interpreted as a productivist or maximalist perspective, assuming the desirability of economic growth, we suggest another understanding, which explicitly problematises the suitability of economic growth and productive employment as means for enhancing capabilities. We argue that the capability approach allows rejecting the identification of social progress with economic growth and that it calls for democratically debating the meaning of wellbeing and quality of life. We analyse the implications of this conceptualisation for the design of welfare states.